Sam is a trader and one of our lead stock analysts at AskTraders. After starting his career predominantly in the forex markets, Sam now focuses on gold and stocks with a preference for macroeconomic analysis.
Nikola Corp (NASDAQ: NKLA) shares are falling premarket on Wednesday after it was revealed that the electric vehicle company’s collaboration with Republic Services (NYSE: RSG) has been discontinued.
Nikola shares are down 10.34% at $15.09 following the news.
The collaboration’s goal was to design and build an industry-first fully integrated refuse truck based on a zero-emissions battery-electric drive platform and body while integrating multiple new systems into a new state-of-the-art vehicle.
However, Nikola said that after considerable collaboration and review, both companies determined that the combination of various technologies and design concepts would result in longer than expected development time and unexpected costs.
It means the collaboration between the two has been terminated and, as a result, the previously announced vehicle order has been cancelled.
The Republic Services order was for a minimum of 2,500 electric refuse trucks, with the option to expand to 5,000, with deliveries expected in 2023. Nikola labelled it a game-changer at the time.
“This was the right decision for both companies given the resources and investments required,” said Nikola CEO Mark Russell following the end of the collaboration.
After a challenging year, Nikola is now focused on following its roadmap to deliver Nikola Tre battery-electric semi-trucks in the US in 2021. It is also planning on creating its first commercial hydrogen station in 2021.
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